Give your gifts now.<\/strong><\/li>\n<\/ul>\n\n\n\nThe holiday season is the perfect time to take advantage of this little tax trick. You can give a financial gift of up to $17,000, or pay someone\u2019s medical or education expenses up to this amount, without it counting toward your lifetime exemption for gifts. This means that a financial gift up to this amount (but not over) is excluded by the IRS from the requirement to file a gift tax return.<\/p>\n\n\n\n
If you send checks to your family members and friends as year-end gifts, make sure that you mail them early enough to clear the bank before January 1st<\/sup> of 2024. A married couple is allowed to make up to a $34,000 gift to one individual without affecting the lifetime exemption for gifts, however a gift tax return needs to be filed.<\/p>\n\n\n\n\n- Consider charitable giving.<\/strong><\/li>\n<\/ul>\n\n\n\n
Ever since the tax law changed to emphasize the standard deduction over itemized deductions, there has rarely been a tax benefit to charitable giving. However, if your giving exceeds the standard deduction, you can benefit. This is why many donors do what\u2019s called bunching, in which you concentrate multiple years\u2019 worth of donations into a single year. You can do this by opening a donor-advised fund, in which you can spread out your donations over multiple years, but you can still take the charitable deduction for 2023.<\/p>\n\n\n\n
For taxpayers who are at least 70.5 years of age, one smart financial strategy is to replace your regularly required minimum distributions with a qualified charitable distribution of up to $100,000 (per individual). While that donation is not tax-deductible, it does lessen your tax burden because it lowers your annual income.<\/p>\n\n\n\n
More Smart Money Actions You Can Take<\/strong><\/p>\n\n\n\nWhile it\u2019s still December, there are a few other actions I\u2019d recommend in order to get some control over your finances:<\/p>\n\n\n\n
\n- Review your annual statement from the Social Security Administration for any income showing that isn\u2019t yours or other erroneous information, as these could be an indication of fraud.<\/li>\n\n\n\n
- If you\u2019re receiving federal disability benefits, check to be sure you\u2019re still eligible; if you haven\u2019t worked for five of the last 10 years, you could lose these benefits, and they\u2019re difficult and expensive to get back.<\/li>\n\n\n\n
- Review your designated beneficiaries on accounts and insurance policies to be sure all information is correct and current. Trust me, I\u2019ve seen what can happen when these are not updated, and it can wreak havoc on a family.<\/li>\n<\/ul>\n\n\n\n
\n- Check your credit report. Every American is entitled to a free credit report from each of the big three credit-reporting agencies (Equifax, Experian, and TransUnion) each year. Getting hold of all three of them can, admittedly, be trickier than it should be, but even getting two of them should give you a good picture of your credit rating. Review it to be sure that nothing looks amiss. Be sure that any late payments are correct or amended and nothing is a surprise. Anything that doesn\u2019t look right is likely to be a simple reporting error, but it could also be an indication of fraud, so go over it carefully and take steps to make necessary corrections. The result could be an improved credit score, so it\u2019s worth your time.<\/li>\n\n\n\n
- Speaking of fraud, credit card fraud is at an all-time high. Be sure you look at all bank and credit card account statements regularly and sign up for any bank alerts on any large transactions. It\u2019s better to have your bank question legitimate transactions than to let questionable ones through.<\/li>\n<\/ul>\n\n\n\n
If you\u2019re ready to make improvements to your financial picture but don\u2019t know where to start, give us a call<\/u><\/a>! In the meantime, happy holidays, and a very sound new year!<\/p>\n","protected":false},"excerpt":{"rendered":"There\u2019s been a lot of talk lately about what awaits us in 2024 \u2014 a recession? More or less inflation? A hold on interest rates? A tax increase? A new president? There\u2019s a lot of uncertainty right now, especially because […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,6,7],"tags":[],"_links":{"self":[{"href":"https:\/\/ludmilacpa.com\/wp-json\/wp\/v2\/posts\/475"}],"collection":[{"href":"https:\/\/ludmilacpa.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ludmilacpa.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ludmilacpa.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ludmilacpa.com\/wp-json\/wp\/v2\/comments?post=475"}],"version-history":[{"count":1,"href":"https:\/\/ludmilacpa.com\/wp-json\/wp\/v2\/posts\/475\/revisions"}],"predecessor-version":[{"id":477,"href":"https:\/\/ludmilacpa.com\/wp-json\/wp\/v2\/posts\/475\/revisions\/477"}],"wp:attachment":[{"href":"https:\/\/ludmilacpa.com\/wp-json\/wp\/v2\/media?parent=475"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ludmilacpa.com\/wp-json\/wp\/v2\/categories?post=475"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ludmilacpa.com\/wp-json\/wp\/v2\/tags?post=475"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}